HomeMy WebLinkAboutStaff Report 2309-2048CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, February 12, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
4.Approval of Two General Services Contracts in the Wastewater Treatment Enterprise
Fund: a Contract with Lystek International Limited in an Amount Not to Exceed
$5,322,769 and a Contract with Synagro-WWT, Inc. in an Amount Not to Exceed
$7,617,013, Both for Offsite Sludge Treatment Services for a Five-Year Term; CEQA status -
exempt
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 12, 2024
Report #:2309-2048
TITLE
Approval of Two General Services Contracts in the Wastewater Treatment Enterprise Fund: a
Contract with Lystek International Limited in an Amount Not to Exceed $5,322,769 and a
Contract with Synagro-WWT, Inc. in an Amount Not to Exceed $7,617,013, Both for Offsite
Sludge Treatment Services for a Five-Year Term; CEQA status - exempt
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute a contract with
Lystek International Limited (Lystek), in the amount of $5,322,769 for sludge treatment
services for the Regional Water Quality Control Plant (RWQCP) for a term of five years,
beginning April 1, 2024, and ending on March 31, 2029. The contract amount for the
first year of the agreement will be $944,240; and
2. Approve and authorize the City Manager or their designee to execute a contract with
Synagro-WWT, Inc. (Synagro), in the amount of $7,617,013 for sludge treatment
services for the RWQCP for a term of five years, beginning April 1, 2024, and ending on
March 31, 2029. The contract amount for the first year of the agreement will be
$1,107,040.
EXECUTIVE SUMMARY
Staff issued a Request For Proposals for sludge treatment services and recommends contracts
be awarded to Lystek (Attachment A) and Synagro (Attachment B). Wastewater treatment is
managed by the RWQCP within the Public Works Department. Since 2018, the City has utilized
contracted services for sludge treatment. Selection and award of general services agreements
has been through formal solicitation of proposals, review of costs, and assessment of quality of
services.
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BACKGROUND
City Council approved retiring the City’s two 46-year-old sewage sludge incinerators1 as a key to
reducing carbon dioxide emissions by over 12,000 metric tons annually. The incinerators
operated from 1972 until their replacement in March 2019 with a new sludge dewatering and
truck loadout facility. Sludge hauling and treatment contracts were implemented to address
sludge treatment after incinerator retirement. Since March 2019, the sludge has been hauled to
two different regional treatment facilities. To prepare for hauling and treatment, the City
solicited requests for proposals for sludge hauling and treatment services in 2017. Five-year
contracts for sludge treatment services with Lystek and Synagro were approved on June 18,
2018, and these contracts have terms through March 31, 2024. To transport sludge to the
treatment facilities, City Council approved a three-year contract2 with Denali Water Solutions,
LLC (Denali) on June 18, 2018 in an amount not to exceed $2,181,000 for sludge hauling
services through March 31, 2022. Denali began daily sludge hauling from the dewatering facility
on March 19, 2019. A new contract3 for sludge hauling, again with Denali, was approved on
January 24, 2022 for three more years of hauling services beginning April 1, 2022 and ending
March 31, 2025.
Lystek
Lystek is a corporation and has a sludge treatment facility approximately 82 miles from the
RWQCP, located at the Fairfield-Suisun Sewer District (FSSD) site under a 20-year lease that
ends January 1, 2036. FSSD is a special purpose district. Through July 2023, Lystek has treated
33,532 wet tons of sludge from Palo Alto. Lystek has also treated sludge from the City of San
Francisco, East Bay Municipal Utility District, Marin County, City of Benicia, City of Petaluma,
City of Santa Rosa, City of South San Francisco, City of Healdsburg, and other Bay Area agencies.
Lystek is currently processing about 200 wet tons per day of trucked-in sludge from multiple
agencies; Lystek’s total processing capacity of 150,000 annual wet tons is more than sufficient
for Palo Alto’s sludge. Lystek uses a low-temperature hydrolysis process involving high-speed
shearing, alkali, and low pressure, low-temperature steam injection. Lystek’s goal is to divert
more than 95 percent of the received Palo Alto sludge to make a product (branded as
LysteMize) that would be added to the FSSD anaerobic digesters. LysteMize will help FSSD
reduce volatile solids, improve biogas and electricity yields, decrease residual biosolids
volumes, and reduce FSSD’s demand from PG&E for both natural gas and electricity by meeting
onsite electric energy demands when combusting the extra biogas in FSSD’s engine generators.
The final product of all sludge sent to Lystek and from the FSSD anaerobic digesters is a USEPA
1 City Council, December 11, 2017; SR # 8487
https://paloalto.admin.opencities.com/InformationManagement/FileAdmin.aspx#&&FH=File_23152553-c158-
4dfe-9795-71bc0ee63c4e
2 City Council, June 18, 2018; SR # 8913
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-sludge-hauling-and-offsite-treatment-
services.pdf
3 City Council, January 24, 2022; SR # 13520, pg. 17
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220124/20220124pccsm-amended-linked-cq-added.pdf
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Class A product (i.e., Lystek’s LysteGro product, which is a registered fertilizer with California
Department of Food and Agriculture). LysteGro is land applied year-round within 100 miles of
the Lystek facility.
Synagro
Synagro is a corporation and operates several sludge composting facilities in the US including
the El Nido Central Valley Composting (CVC) facility located in Dos Palos, approximately 114
miles from RWQCP. CVC uses an open windrow processing method that combines RWQCP
sludge with a bulking agent (primarily green waste and wood waste). High temperature aerobic
composting converts RWQCP sludge into a USEPA Class A product that is sold in bulk to the
region’s agricultural market; the product is typically land applied within 30 miles of the Synagro
CVC facility. The CVC facility is permitted by CalRecycle to handle up to 100,000 tons per year of
feedstock. Through July 2023, Synagro has treated 47,267 wet tons of Palo Alto sludge. CVC has
also serviced the City of Fresno, City of Sunnyvale, Silicon Valley Clean Water in Redwood City,
City of San Francisco, Union Sanitary District in Union City, South County Regional Wastewater
Authority serving Gilroy and Morgan Hill, and the Delta Diablo Sanitation District in Antioch.
ANALYSIS
On June 21, 2023, a Request for Proposals (RFP 187745) was posted on OpenGov, the City’s
eProcurement platform, and an email notification sent to the Bidder’s List, which included four
offsite treatment facilities, seeking proposals from qualified sludge treatment facilities. The RFP
allowed service providers to submit a proposal for all or part of the sludge produced by the
RWQCP as noted in Table 1, which is based on the lowest and highest quarters of sludge
production since January 2020.
Table 1: Sludge Production Estimates
Dates
Estimated Minimum Sludge
Production
Estimated Maximum
Sludge Production
Estimated Annual
Production Increase
4/1/24 – 3/31/25 16,500 20,600 --
4/1/25 – 3/31/26 16,500 21,424 4%
4/1/26 – 3/31/27 16,500 22,281 4%
4/1/27 – 3/31/28 16,500 25,089 4% + 1917 tons1
4/1/28 – 3/31/29 16,500 28,754 4% + 2661 tons1
1Note: Additional sludge production is expected with upgraded Secondary Treatment system, which will produce
an estimated 34% additional waste activated sludge (WAS) or about 10% additional total sludge production
beginning on an estimated date of 6/9/2027; consequently, the ratios of primary and WAS sludge listed in the
scope of work’s Attachment B, Exhibit A may change slightly in years 4 and 5 of the contract.
Proposals were due on August 15, 2023 and two proposals were received. The table below
provides a summary of the RFP process:
Proposal RFP# 187745
Proposal Name: Sludge Treatment Services for the
Regional Water Quality Control Plant
Proposed Length of Project 60 Months
Number of Vendors Notified 2708
Number of Proposal Packages Downloaded 33
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The evaluation committee, composed of representatives from the Public Works Department,
carefully reviewed and assessed the two proposals using standard evaluation criteria. The
committee carefully reviewed each firm's qualifications and submittal in response to the
criteria identified in the RFP. The providers not proposing do not have the capacity or ability to
take Palo Alto’s sludge during the five-year contract term.
Staff recommends award of contracts to both Synagro and Lystek for diversification of options
consistent with current practice. Both proposers have provided good service since the start of
regular services in the prior contract since March 2019. The contracted minimum annual
delivery in the contracted scope of work is 5,800 and 10,000 tons per year to Lystek and
Synagro, respectively. Staff contacted Lystek and explored lowering the Lystek minimum
tonnage below 5,800 tons per year, which is a reduction from the current contract’s minimum
to Lystek of 6,500 tons per year. Further reduction in the Lystek minimum annual delivery
requirement is not an option. Surplus sludge production above the Lystek minimum will be
directed to the lower cost Synagro facility.
FISCAL/RESOURCE IMPACT
The five-year cost for the sludge treatment services contract in comparison to the prior five-year
contract has increased by $5.9 million.
COMPARISON OF CONTRACT COSTS (PROPOSED AND EXISTING)
2024-2029 Cost Proposal Total, Lystek & Synagro $12,939,782
2019-2024 Cost Proposal Total, Lystek & Synagro $7,064,000
Five Year Total Cost Increase $5,875,782
($1.2M annually)
The unit price for both facilities will be increasing on April 1, 2024 as follows:
•Lystek increases from $98.55/wet ton to $148.00/wet ton; and
•Synagro increases from $40.85/wet ton to $68.00/wet ton.
Vendors have indicated that the increase in unit price between the two five-year general
service contracts is because of (a) greater regional demands on offsite sludge treatment
capacity, (b) greater demands on capacity because of regulatory changes due to SB 1383 (2016)
restricting disposal of biosolids in landfills as alternative daily cover, (c) higher transportation
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto-
ca/projects/51100
Total Days to Respond to Proposal 53 days
Mandatory Pre-proposal Meeting Tuesday, July 25, 2023 at 10:00 a.m. PST
Number of Providers at Pre-proposal Meeting 6 providers
Number of Proposals Received 2 proposals received
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expenses for the offsite facilities to haul the biosolids fertilizer and biosolids compost to its end
use, (d) higher fuel costs, and (e) higher chemical costs, as much as a 100% increase, for
Lystek’s process.
There has also been higher labor inflation (about 4% to 5% per year) for labor at the treatment
facility and for the drivers hauling away the Class A biosolids. The actual inflation realized over
the course of the current contracts from 11/28/18 to 3/31/24 was not captured in the original
contracts, and they were set contractually at 2% per year (Synagro)4 and 3% per year (Lystek)5.
Actual San Francisco CPI-U inflation over a similar period has averaged 3.92% (August 2018 to
August 2023). Said another way, Synagro assumed 10% inflation but about 20% was realized in
the first 5-year contract; likewise, Lystek assumed 16% inflation but about 20% was realized.
Both proposers reflect a greater uncertainty in the next five-year contract for the 12-month
price adjustments (i.e., 4.0% to 6.0%).
Staff believes that the proposals submitted by Lystek and Synagro fit the overall cost,
experience, and operational flexibility needed at the RWQCP. Each treatment facility is
successfully handling large quantities of sludge. The unit price summary of both facilities is
included in Table 2 below.
Table 2: Lystek and Synagro Treatment Facility Unit Prices US $/wet ton
Facility
Current
Contract
11/28/23 -
3/31/24
Year 1
4/1/24-
3/31/25
Year 2
4/1/25-
3/31/26
Year 3
4/1/26-
3/31/27
Year 4
4/1/27-
3/31/28
Year 5
4/1/28-
3/31/29 Comment
Lystek $98.55 $148.00 $156.88 $166.29 $176.27 $186.85
4500 tons May to
October;
1300 tons
November to April
Synagro $40.85 $68.00 $72.08 $76.40 $80.99 $85.85 10,000 tons per
year minimum
Notes:
1. Lystek 12-month price increase is 6.0%, 5.0%, 4.0%, and 4.0% per year for contract years 2, 3, 4, and 5,
respectively.
2. Synagro 12-month price increase is 4.8% per year for contract years 2, 3, 4, and 5.
3. For purposes of calculating not-to-exceed amounts and allow for diversification in force majeure
situations, a 10% adder is included; the Lystek annual amount is set at 6,380 wet tons per year and
Synagro annual amount is set at 14,800 tons in contract year one rising to 22,954 tons in contract year
five
Contingency for Force Majeure Situations and Regulatory Changes
4 City Council, June 18, 2018; SR 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-
sludge-hauling-and-offsite-treatment-services.pdf
5 City Council, June 18, 2018; SR 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-
sludge-hauling-and-offsite-treatment-services.pdf
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Unit prices govern each agreement up to the authorized not to exceed amounts and pursuant
to tonnage minimums as well as actual production of RWQCP sludge. A force majeure may limit
sludge disposal options (e.g., damaged roadways, earthquake damage, process breakdowns,
new regulatory constraints, etc.). In these two contracts, Palo Alto has the benefit of diversified
disposal options at Lystek and Synagro. The RWQCP’s 24/7 production of sludge requires a
disposal option be active and available within one to two days, depending on RWQCP’s
available onsite sludge storage.
Lystek has onsite sludge drying beds that serve as a secondary backup should the main
processing facility be unavailable. Synagro and Lystek can each receive all the RWQCP-produced
sludge, if needed. Both Lystek and Synagro produce sludge meeting USEPA Class A standards
suitable for year-round land application. Considering potential new regulatory drivers, tonnage
commitments, operational flexibility, and cost, staff recommends Synagro and Lystek as the
two treatment facilities for Palo Alto’s sludge.
Long Range Facilities Plan Update to Look at Future Options for RWQCP Biosolids Treatment
Lystek and Synagro continue to provide an efficient and cost-effective solution for biosolids
treatment, however, there may be other options that could be implemented after the term of
this contract that better serve the City. A long-term biosolids treatment solution was
established with the October 2014 Biosolids Facilities Plan. That plan was re-evaluated in a
Biosolids Facilities Plan Update6 in October 2019, which was completed six months after startup
of the new sludge dewatering and truck loadout facility. The 2019 Biosolids Facilities Plan
update continued to show that offsite treatment was the best option in the interim.
The Long Range Facilities Plan7 (LRFP) was approved in 20128. The RWQCP is in the process of
updating the LRFP. Consultant selection for the LRFP Update is expected to be approved by City
Council in approximately May 2024. The LRFP Update will include a task to update the 2019
Biosolids Facilities Plan Update; the LRFP Update and the biosolids treatment facility analysis
will be completed by approximately December 2026. The results of that evaluation will inform
the future efficiency, environmental benefit, and cost effectiveness of sludge hauling and
offsite sludge treatment services. As requested by City Council at the August 21, 2023 meeting
on property acquisition9 adjacent to the RWQCP, the evaluation will include an analysis of the
need for the Measure “E” site adjacent to the RWQCP. Finally, the San Jose Water Pollution
Control Plant is evaluating proposals through about the end of 2025 for a privately constructed
6 Palo Alto Regional Water Quality Control Plant Biosolids Facility Plan Update;
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/water-quality-control-plant/sludge-
dewatering-building/finaldraft_palo_alto_bfp_update.pdf?t=47012.05
7 The Long Range Facilities Plan for the Regional Water Quality Control Plant Final Report
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/water-quality-control-plant/lrfp-final-report-
08-2012.pdf
8 City Council, July 2, 2012; SR 2914 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2012/id-2914.pdf
9 City Council, August 21, 2023; SR 2304-1389, Item 7,
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13014
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and operated biosolids facility at the San Jose wastewater plant site (i.e., about eight acres of
land set aside for this operation)10. This potential facility would be operational in 2029 at the
earliest; the request for proposals indicated that the contracted operator may be open to
imported feedstock from other agencies such as Palo Alto. Imported feedstock would likely only
be received after successfully proven operation treating San Jose biosolids and if the private
operator had surplus capacity for imported feedstock. The anticipated San Jose treatment
facility option will also be evaluated in the LRFP Update.
Budget Summary
As the contracts commence April 1, 2024, the three-month cost of the contracts in Fiscal Year
2024 with the two vendors is estimated to be $485,599 for sludge treatment services. These
contracts would continue to be budgeted in the Wastewater Treatment Enterprise Fund
operating budget. The additional contract service expense of about $177,332 in FY2024 will be
absorbed by the Wastewater Treatment Enterprise Fund or staff will return for a Budget
Amendment, as needed.
For future Fiscal Years 2025 through 2029 of the respective contracts, funding is subject to City
Council approval and the annual appropriation of funds through the budget process. Estimated
contracted amounts are shown below in Table 3 and Table 4 by fiscal year and contract year,
and contracted amounts include 10 percent additional sludge compared to the estimates in
Table 1 delivered to either Lystek or Synagro to provide flexibility in meeting minimum delivery
guarantees and force majeure situations.
Table 3: Sludge Hauling and Treatment Cost Summary by Fiscal Year
FY Lystek Synagro
Sludge Treatment
Cost Total
Denali
(sludge hauling)
Sludge Hauling and
Treatment Cost Total
2024
(last 3 months)$279,474 $254,685 $534,159 $176,583 $710,742
2025 $961,008 $1,138,564 $2,099,573 $727,470 $2,827,043
2026 $1,018,669 $1,273,875 $2,292,544 $780,218 $3,072,762
2027 $1,079,789 $1,465,087 $2,544,876 $854,721 $3,399,598
2028 $1,144,576 $1,830,157 $2,974,733 $1,000,986 $3,975,719
2029
(first 9 months) $839,252 $1,654,645 $2,493,897 $852,443 $3,346,340
Total $5,322,769 $7,617,013 $ 12,939,782 $ 4,392,422 $17,332,204
10 San Jose City Council, October 24, 2023; San Jose City Council Agenda File 23-1418, Item 2.9,
https://sanjose.legistar.com/View.ashx?M=F&ID=12367407&GUID=C7666A67-143D-42FE-9A5D-43DBF97ED1D6
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Table 4: Sludge Treatment Cost Summary by Contract Year
Contract Year Lystek Synagro Lystek + 10%Synagro + 10%
1 $858,400 $1,006,400 $944,240 $1,107,040
2 $909,904 $1,126,178 $1,000,894 $1,238,796
3 $964,498 $1,259,224 $1,060,948 $1,385,147
4 $1,022,368 $1,562,195 $1,124,605 $1,718,414
5 $1,083,710 $1,970,560 $1,192,081 $2,167,616
Total $4,838,881 $6,924,557 $5,322,769 $7,617,013
STAKEHOLDER ENGAGEMENT
RFP 187745 was issued in on June 21, 2023 for further continuance of sludge treatment
services. The evaluation committee for this RFP included staff from the Public Works
Department under the guidance of the City’s Purchasing and Contracts Administration Division.
ENVIRONMENTAL REVIEW
City Council action on this item is exempt from review under the California Environmental
Quality Act (CEQA) in the proposed contracts for sludge dewatering and hauling since these are
existing operations at the RWQCP. CEQA Guidelines section 15301.
ATTACHMENTS
Attachment A: Contract C24187745A with Lystek International Limited
Attachment B: Contract C24187745B with Synagro-WWT, Inc.
Attachment C: Key Terms
APPROVED BY:
Brad Eggleston, Public Works Director
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C24187745A
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 12th day of February, 2024, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and LYSTEK INTERNATIONAL LIMITED, a California corporation, located at 1014
Chadbourne Road, Fairfield, CA 94534, Telephone Number: 707-419-0084
(“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree
as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“A-1” – Palo Alto Sludge Characteristics
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from April 1, 2024 to March 31, 2029 inclusive,
subject to the provisions of Sections R and W of the General Terms and Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );
OR
DocuSign Envelope ID: A96C8D7E-3923-4DE7-8E38-7DD35DB5D0CE
City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of five million
three hundred twenty-two thousand seven hundred sixty-nine dollars
($5,322,769.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
DocuSign Envelope ID: A96C8D7E-3923-4DE7-8E38-7DD35DB5D0CE
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
foregoing, in no event shall CONTRACTOR’s compensation rates be
increased by an amount exceeding five percent of the rates effective
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this
Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind. Public Contract Code Section 9204 mandates
certain claims procedures for Public Works Projects.
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: James Allen, Dept.: Public Works, Telephone: 650-329-2243, Email:
rwqcp.invoices@cityofpaloalto.org. Invoices shall be submitted in arrears for
Services performed. Invoices shall not be submitted more frequently than
monthly. Invoices shall provide a detailed statement of Services performed during
the invoice period and are subject to verification by CITY. CITY shall pay the
undisputed amount of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set forth
in Palo Alto Municipal Code section 4.62.030 for each hour worked within the
geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall
post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with
Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
expressly warrants that all materials, goods and equipment provided by
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial
acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights
under this Agreement.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION.
1. Termination for Default.
a. Either party may terminate this Agreement in the event of a substantial failure
by the other party to perform any of its material obligations under this
Agreement; provided, however, that the party alleged to be in default shall be
given an opportunity to cure the default as provided herein. Notice of intent
to terminate shall be in writing and shall be given as provided in Section S of
this Agreement. The notice shall describe the reasons for the intended
termination. This Agreement shall not be terminated if the party alleged to be
in default gives written notice of its intent to cure the default within five (5)
days after service of the notice of intended termination, and, in addition, fully
cures the default within thirty (30) days after service of the notice of intended
termination; provided that, if the nature of the breach is such that it will
reasonably require more than 30 days to cure, the party alleged to be in
default shall not be in default so long as it promptly commences the cure and
diligently proceeds to completion of the cure within 60 days after notice, and
provided that neither notice nor opportunity to cure applies to events
described in subsection (b) below.
b. CITY may immediately terminate this Agreement if prior to CITY meeting its
annual maximum, if any, for sludge to be treated by CONTRACTOR,
CONTRACTOR ceases to accept sludge from the City for a period of 5
consecutive days (or on a total of 15 days during any calendar year) for any
reason within the CONTRACTOR’s reasonable control.
c. CITY’s withholding of payment due to an alleged breach shall not constitute a
substantial failure to perform its material obligations under subsection (a)
above.
d. In the event of a termination for default, both parties shall have all the rights
and remedies provided by law.
2. Termination for Convenience.
The City Manager may terminate this Agreement without cause by giving thirty
(30) days’ prior written notice thereof to CONTRACTOR..
3. General Provisions
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this Agreement are no longer available. This Section
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
shall take precedence in the event of a conflict with any other covenant, term,
condition, or provision of this Agreement.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including, but not
limited to, Extended Producer Responsibility requirements for products
and packaging. A copy of this policy is on file at the Purchasing Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR
and its listed subcontractors are registered with the California Department of
Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.
City requires CONTRACTOR and its listed subcontractors to comply with the
requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract Code,
or engage in the performance of any contract for public work, as defined in this
chapter, unless currently registered and qualified to perform public work pursuant
to Section 1725.5. It is not a violation of this section for an unregistered contractor
to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code,
provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR
is required to post all job site notices prescribed by law or regulation and
CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by
DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its listed
subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR and
its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within the
10-day period, then CONTRACTOR and its listed subcontractors shall be subject to
a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof,
for each worker, and CITY shall withhold the sum total of penalties from the
progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
CC. FORCE MAJEURE. Neither Party shall be in default of its obligations under this
Agreement in the event, and for so long as, it is impossible or extremely
impracticable for it to perform its obligations due to an “act of God” (including,
but not limited to, flood, earthquake, fire or other catastrophic events), civil
disturbance, strikes (except any strikes involving a Party's personnel), orders or
judgments of any Federal, State or local court, administrative agency or
governmental body, or other similar cause affecting the city of Palo Alto, not the
fault of, and beyond the reasonable control of, the Party claiming excuse. A party
claiming excuse under this Section must (1) have taken reasonable precautions, if
possible, to avoid being affected by the cause and (2) notify the other Party in
accordance with this Section.
Any suspension of performance by a Party pursuant to this Section shall be only
to the extent, and for a period of no longer duration than, required by the nature
of the event, and the Party claiming excuse from obligation shall use its best
efforts in an expeditious manner to remedy its inability to perform, and mitigate
damages that may occur as a result of the event.
The Party claiming excuse shall deliver to the other Party a written notice of intent
to claim excuse from performance under this Agreement by reason of an event of
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City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
Force Majeure. Notice shall be given promptly in light of the circumstances, but in
any event not later than 5 days after the occurrence of the event of Force Majeure.
Such notice shall describe in detail the event of Force Majeure claimed, the
services impacted by the claimed event of Force Majeure, the expected length of
time that the Party expects to be prevented from performing, the steps which the
Party intends to take to restore its ability to perform, and such other information
as the other Party reasonably requests.
The partial or complete interruption or discontinuance of CONTRACTOR’s services
caused by an event of Force Majeure shall not constitute an event of default under
this Agreement. Notwithstanding the foregoing, in the event of non-performance
excused by Force Majeure, where the CONTRACTOR’s nonperformance continues
or is noticed to continue for 10 days or more, CITY shall have the right to terminate
this Agreement immediately and shall have no obligation to pay for services that
have not been performed.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement on the date first above written.
CITY OF PALO ALTO LYSTEK INTERNATIONAL LIMITED
_________________________ By________________________________
City Manager or Designee
Name _____________________________
Title_______________________________
Telephone__________________________
Approved as to form: By_________________________________
Name______________________________
__________________________
City Attorney or Designee Title________________________________
Telephone___________________________
DocuSign Envelope ID: A96C8D7E-3923-4DE7-8E38-7DD35DB5D0CE
Ron Tomlinson
CEO
Ron Tomlinson, Chief Executive Officer
6138595962
CFO
Christopher Flann, Chief Financial Officer
City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
EXHIBIT A
SCOPE OF SERVICES
1. BACKGROUND AND PURPOSE
a. The RWQCP is a wastewater treatment plant that produces sludge
requiring offsite treatment. Two onsite sewage sludge incinerators were
retired in 2019 and replaced with a new sludge dewatering and truck
loadout facility. Since 2019, the sludge has been hauled to two different
regional treatment facilities, including the Lystek site in this contract, for
treatment and end use disposal.
b. To prepare for hauling and treatment, the City first solicited proposals for
sludge hauling and treatment services in 2017. Council approved a three-
year contract 1 with Denali Water Solutions, LLC (Denali) on June 18, 2018
for sludge hauling services through March 31, 2022. Denali began daily
sludge hauling from the City’s dewatering facility on March 19, 2019. Five-
year contracts1 for sludge treatment services with Lystek International
Limited (Lystek) and Synagro-WWT, Inc. (Synagro) were also approved on
June 18, 2018, but these contracts have longer terms through March 31,
2024. A new contract2 for sludge hauling, again with Denali, was approved
on January 24, 2022 for three more years of hauling services beginning
April 1, 2022 and ending March 31, 2025. Following a new solicitation, this
contract extends by five years the sludge treatment services provided at
the Lystek treatment facility.
c. Current treatment facility addresses are shown below along with currently
contracted annual minimums and pricing through 3/31/2024:
i. Lystek International Limited Organic Material Recovery Center on
the site of Fairfield-Suisun Sewer District (FSSD)
1. Address: 1010 Chadbourne Rd, Fairfield, CA 94534
2. Minimum wet tons per year is 6,500 at $98.55/ton
1 Staff Report ID# 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-sludge-hauling-and-offsite-treatment-
services.pdf
2 Staff Report ID# 13520, see p. 17 at https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2022/20220124/20220124pccsm-
amended-linked-cq-added.pdf
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City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
2. SLUDGE PREPARER’S ADDRESS
Palo Alto Regional Water Quality Control Plant
2501 Embarcadero Way
Palo Alto, CA 94303
650-329-2598 - phone
3. SERVICE ASSUMPTIONS AND PRICES.
a. Except for tonnage commitments required by the Contractor, the City does
not expressly or by implication agree that the actual amount of work shall
correspond to annual raw sludge tonnages mentioned in this specification,
but reserves the right to increase, decrease, or modify the amount of any
class or portion of the work or to omit portions of the work as may be
deemed necessary or expedient by the City.
b. Annual minimum tonnage delivery is 5,800 tons annually
i. 4,500 wet tons during May through October, 1 truck per day, 7 days
per week (excluding holidays Hauler is not operating)
ii. 1,300 wet tons during November through April, 2 trucks per week
4. PALO ALTO SLUDGE CHARACTERISTICS
a. The material covered under this Agreement is a mix of raw, dewatered
wastewater sludge and scum (hereafter, “sludge”) that has not yet been
stabilized.
b. The wastewater sludge is collected as waste sludge from activated sludge
tanks (about 29% of total content) and primary sludge settling tanks (about
71% of total content). This blend is then thickened in gravity thickeners to
3% to 4% solids. The sludge blend is processed through grinders before
being sent to a blend tank. The sludge is kept blended with mix pumps and
aerated by a blower in a 100,000 gallon mix tank, is pumped to a belt filter
press, is treated for odors in-line with a sodium hypochlorite solution, and
is then dewatered using a high molecular weight cationic polymer solution
on a belt filter press. Upstream preliminary treatment processes include
grit removal and mechanically raked barscreens using ¾” spacing at the
headworks.
c. Primary tank scum is pumped through a grinder, sent to a scum
concentrator, and thickened to about 50% solids. This scum is added to the
20% plus sludge cake screw conveyors that feed into sludge cake bins.
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City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
d. Solids content of filter press cake will have a solid content of not less than
22%. In general, sludge dryness is often in the range of 29% to 30%.
e. Except as stated herein, the City cannot guarantee condition or quality of
the material. Therefore, notice is hereby given that the content and nature
of the sludge and scum may change depending on RWQCP process control
changes, treatment plant changes, influent characteristics, or treatment
plant effectiveness.
f. The City will certify that the wastewater sludge and scum pollutant
concentrations are at or below the metal concentration limits established
in 40 CFR 503.13, Table 1 and Table 3.
g. The wastewater sludge contains pathogenic microorganisms and does not
meet all 40 CFR 503 regulations. The city declares that:
i. The sludge does not meet the pathogen reduction requirements of
40 CFR 503.32(b)(3) [“PRSP”].
ii. The sludge does not meet the vector attraction reduction
requirements of 40 CFR 503.33(b)(1).
h. Furthermore, the RWQCP’s annual USEPA biosolids reports are available
upon request. Exhibit A-1 (Palo Alto Sludge Characteristics) is provided
with analytical data, including trace metal analysis on sludge and scum as
well as general raw sludge characterization.
i. At no time during the term of this Agreement shall the City make available
to the Treatment Facility, nor shall the Treatment Facility be obligated to
handle, any wastewater sludge which is designated a hazardous waste
under any applicable law, rule, or regulation, and nothing herein shall
relieve the City of any liability or responsibility with respect to any sludge
generated at its facilities which is a hazardous waste.
j. The City will sample and test its final sludge material to identify the metal
concentration limits. All City sampling and analytical reports are available
upon request during the term of the agreement. Per USEPA sewage sludge
regulations (40 CFR Section 503), sludge is sampled every other month for
metals including: arsenic, cadmium, copper, lead, mercury, molybdenum,
nickel, selenium, and zinc concentrations.
DocuSign Envelope ID: A96C8D7E-3923-4DE7-8E38-7DD35DB5D0CE
City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
5. SLUDGE PRODUCTION ESTIMATES
a. The City produces wastewater sludge twenty-four (24) hours per day,
seven (7) days per week resulting in approximately 16,500 to 20,000 wet
tons annually, which is approximate to the lowest and highest quarter
production rates since January 2020, excluding 2023 first quarter. Note
from Exhibit B that 2019 was a year of optimizing the sludge dewatering
facility. Though 2019 is pre-pandemic and would seem to be the year for
estimating maximum production values, 2019 is not indicative of current
sludge dewatering capabilities and anticipated production quantities.
January to March 2023 shows higher tonnage amounts from solids
loadings induced by winter storm flows, and they are not used for
predicting future maximum sludge production. The estimated sludge
below will be divided between two vendors, Lystek and Synagro.
Dates
Estimated
Minimum
Sludge
Production
Estimated
Maximum Sludge
Production
Estimated Annual
Production
Increase
4/1/24 – 3/30/25 16,500 20,600 --
4/1/25 – 3/30/26 16,500 21,424 4%
4/1/26 – 3/30/27 16,500 22,281 4%
4/1/27 – 3/30/28 16,500 25,089 4% + 1917 tons1
4/1/28 – 3/30/29 16,500 28,754 4% + 2661 tons1
1 Note: additional sludge production expected with upgraded Secondary
Treatment system, which will produce an estimated 34% additional waste
activated sludge (WAS) or about 10.2% additional total sludge production
beginning on an estimated date of 6/9/2027
b. Production rates may be varied or stopped to match RWQCP operational
needs. Operation may also be interrupted occasionally for maintenance or
repair.
c. The amount of biosolids to be treated is an estimate only. Therefore,
notice is hereby given that the quantity, content, and nature of the
material may change depending on the RWQCP process control changes,
process upsets, plant upgrades, repairs, maintenance, operational
improvements, belt press dewatering schedule, day of week, holidays,
seasonal changes, storm-induced increases in produced solids, changes in
community population, treatment plant changes, and so forth.
6. GENERAL RESPONSIBILITIES
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City of Palo Alto General Services Agreement 17 Rev. March 29, 2018
a. The Contractor, as the treatment facility operator, is to know, follow,
comply with, and stay updated on all federal, state, and local laws,
regulations, statues, ordinances, orders, decrees, and permits that affect
this work. This includes loading and unloading, treatment site operation
and maintenance, monitoring and reporting, processing and disposal of
sludge, USDOT, transportation, driver and operator certifications,
environmental and pollution regulations, noise control, and inspections by
authorized representatives as required by such requirements.
Documentation of specific permits, orders, decrees, registrations, and so
forth shall be provided upon request. All costs associated with obtaining
such permits and licenses shall be considered as included in the unit price.
Federal Regulations, including 40 CFR Parts 257, 258, 403 and 503, provide
specific requirements for biosolids disposal and must be complied with.
b. Raw sludge contains micro-organisms from the wastewater treatment
process that include pathogens. Precautions are required, such as
adequate training, wearing proper PPE (e.g., latex or nitrile gloves, boots,
etc.), washing hands with soap, and access to potable drinking water and
OSHA approved first aid kits. The Contractor is to follow an Exposure
Control Plan for Blood Borne Pathogens pursuant to Cal-OSHA rules and
California Code of Regulations, Title 8, Section 5193. The Exposure Control
Plan is to be on file for review, if requested.
7. DELIVERY SCHEDULE
a. The RWQCP operates year-round and normally calls for two truck pickups
per day, each truck averaging 25 wet tons of sludge. The RWQCP may call
for three trucks and sometimes one truck or no trucks. There have been a
few instances of four or five trucks called for in one day.
b. The RWQCP typically requires haulers to load sludge prior to 6:00 a.m. in
Palo Alto but trucks may be loaded later in the morning, depending on the
situation, haul distance, driver hour limits, and so forth.
c. Treatment sites that are closed for specific holidays (e.g., Thanksgiving,
Christmas, New Years’) or when the City’s contracted hauler is not working
can be accommodated with additional storage capacity at the RWQCP for
one day with advanced planning. During the contract term, the Treatment
Facility is to coordinate with the City’s contracted hauler and the RWQCP
about operating status and hours for public holidays.
d. The Treatment Facility is to share their operating hours with City’s
contracted hauler. The Treatment Facility is to share holidays that they are
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City of Palo Alto General Services Agreement 18 Rev. March 29, 2018
closed with City’s contracted hauler.
8. COORDINATION WITH CITY’S CONTRACTED SLUDGE HAULER
a. Permit requirements at treatment site are to be shared with City’s
contracted hauler upon request by City or hauler at no extra expense to
City of Palo Alto.
b. Any permit requirements are to be directly handled with City’s contracted
hauler, including for insurance, training, reporting, and other
requirements.
c. The City does not have a certified weigh scale onsite. It is the City’s hauler’s
responsibility to avoid overweight loads and pay any associated fines. The
Treatment Facility should directly notify the hauler’s dispatcher of
overweight loads as well as notify the City’s project manager. The City can
direct the Hauler to load their trailers with less weight, if needed. There
are no RWQCP onsite zones or facilities for unloading excess material to
return a truck to a legal weight limit. There is no separate weigh scale
onsite to aid the Hauler in how much material to remove.
d. The RWQCP is not a staging or storage site. The City will not normally allow
a hauler to stage or store loaded trucks at the RWQCP or a Treatment
Facility, except permission may be granted for unusual circumstances.
9. TREATMENT REQUIREMENTS
a. If the treatment / disposal facility has a permit violation, they will notify
the Palo Alto project manager in writing within 30 days of receipt of
written notice. All fines will be paid by the treatment facility and not billed
to Palo Alto.
b. The treatment facility is required to provide adequate space to
accommodate the ingress and egress of the trucks and trailers of the City’s
sludge hauling contractor. The facility will provide water for vehicle clean-
up, suitable lighting for nighttime operation, and any additional facilities
(portable toilets, handwashing facilities) that may be required.
c. Treatment facility shall provide an annual summary to the City of all
monitoring and analytical data as required to complete the City’s Annual
Biosolids Generator’s Report for the USEPA due February 19th of each year.
This annual summary shall be posted by January 31st each year and shall
be sent to the Project Manager.
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City of Palo Alto General Services Agreement 19 Rev. March 29, 2018
d. Treatment facility shall provide the name of a 24-hour emergency contact
person and phone number. Facility will train their onsite staff and comply
with Palo Alto Emergency and Spill Response Plan, as necessary.
e. City will have right to inspect treatment / disposal facility’s site at any time
and without prior notification. Treatment facility shall maintain and
provide copies to the City of all records, documents, and papers
documenting the disposition of biosolids handled by the facility for
inspection by authorized local, state, and federal representatives as
required by law.
f. Neither party shall use the name, marks, or logo of the other treatment
facility in any planned advertisement, promotional material, press release,
or other planned publicity or marking materials, in any form or media, with
regard to the subject matter of the agreement without the prior written
approval of the other party.
g. Treatment parties shall share any requirements and conditions to the
City’s Palo Alto’s contracted Hauler, if not already provided to the current
hauler (i.e., Denali). The contracted hauler may change on April 1, 2025 or
later, when the current 3-year hauling contract and any contract
extensions are completed. If a new hauler is contracted by the City, the
Treatment Facility shall promptly coordinate their requirements with the
new City hauler.
h. Annual reports shall be provided to the RWQCP each year detailing
tonnage treated and final disposal disposition.
i. Treatment facility dates, times, hours of operation, and holiday schedules
shall be provided to sludge haulers interested in proposing on services to
the City of Palo Alto.
10. PAYMENT AND PRICING CONDITIONS
a. See Attachment C – Contract, Section 8, Invoicing.
b. Payment for work is to be made on a wet tonnage basis. Weight shall be
based on a certified scale.
c. Except as directed otherwise in these specifications, full compensation for
completing Agreement work is considered to be included in the unit prices
paid for the various items of work and no separate payment will be made
therefore.
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City of Palo Alto General Services Agreement 20 Rev. March 29, 2018
d. Invoicing. Submit a monthly invoice to:
Rwqcp.invoices@cityofpalolato.org
Palo Alto Regional Water Quality Control Plant
Attn: Project Manager, James Allen
2501 Embarcadero Way
Palo Alto, CA 94303
650-329-2598 - phone
Invoice shall include:
• Purchase Order Number
• Item description
• Copy of each load delivery tag along with the tons hauled
• Attached certified weight ticket for each load
• Certified net weight of each load times contract price per ton
11. DOCUMENTATION
a. The Contractor shall, at all times during the transportation, storage, and
disposal of sludge to be managed under this Agreement, know the
location, condition and status of each item being managed.
END OF SECTION
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City of Palo Alto General Services Agreement 21 Rev. March 29, 2018
EXHIBIT A-1
PALO ALTO SLUDGE CHARACTERISTICS
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City of Palo Alto General Services Agreement 22 Rev. March 29, 2018
EXHIBIT B
SCHEDULE OF PERFORMANCE
CHOOSE ONE OF THESE ALTERNATIVES TO DESCRIBE SCHEDULE:
Alternative 1.
CONTRACTOR shall perform the Services according to the following schedule:
Daily sludge treatment from April 1, 2024 to March 31, 2029.
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City of Palo Alto General Services Agreement 23 Rev. March 29, 2018
EXHIBIT C
SCHEDULE OF FEES
ALTERNATIVE 3. Compensation based upon fee schedule
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of
compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses,
shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours
worked for which payment would result in a total exceeding the maximum amount of compensation set forth
herein shall be at no cost to CITY.
DETAILED RATE SCHEDULE
Start End
Lystek
Unit Price
($ / US Wet Ton)
Lystek
Annual Adjustment Factor
04/01/24 03/30/25 $ 148.00
04/01/25 03/30/26 $ 156.88 6.0%
04/01/26 03/30/27 $ 166.29 5.0%
04/01/27 03/30/28 $ 176.27 4.0%
04/01/28 03/30/29 $ 186.85 4.0%
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City of Palo Alto General Services Agreement 24 Rev. March 29, 2018
EXHIBIT D
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM
OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE
SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR
HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF
CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED,
BELOW:
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
NO AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
NO
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $2,000,000
YES POLLUTION LIABILITY
ALL DAMAGES $2,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT
ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND
EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE
INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND
ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
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City of Palo Alto General Services Agreement 25 Rev. March 29, 2018
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS,
SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY
REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING
COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN
NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-
PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
DocuSign Envelope ID: A96C8D7E-3923-4DE7-8E38-7DD35DB5D0CE
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C24187745B
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 12th day of February, 2024, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and SYNAGRO-WWT, INC., a Maryland corporation, located at 435 Williams Court, Suite
100, Baltimore, MD 21220, Telephone Number: 410-688-4438 (“CONTRACTOR”). In
consideration of their mutual covenants, the parties hereto agree as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“A-1” – Palo Alto Sludge Characteristics
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from April 1, 2024 to March 31, 2029 inclusive,
subject to the provisions of Sections R and W of the General Terms and Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
The total maximum lump sum compensation of dollars ($ );
OR
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City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of seven million
six hundred seventeen thousand and thirteen dollars ($7,617,013.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
foregoing, in no event shall CONTRACTOR’s compensation rates be
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City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
increased by an amount exceeding five percent of the rates effective
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this
Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind. Public Contract Code Section 9204 mandates
certain claims procedures for Public Works Projects
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: James Allen, Dept.: Public Works, Telephone: 650-329-2243;
rwqcp.invoices@cityofpaloalto.org. Invoices shall be submitted in arrears for
Services performed. Invoices shall not be submitted more frequently than
monthly. Invoices shall provide a detailed statement of Services performed during
the invoice period and are subject to verification by CITY. CITY shall pay the
undisputed amount of invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
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City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set forth
in Palo Alto Municipal Code section 4.62.030 for each hour worked within the
geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall
post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with
Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
expressly warrants that all materials, goods and equipment provided by
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City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial
acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights
under this Agreement.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
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City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
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City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this Agreement are no longer available. This Section
shall take precedence in the event of a conflict with any other covenant, term,
condition, or provision of this Agreement.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including, but not
limited to, Extended Producer Responsibility requirements for products
and packaging. A copy of this policy is on file at the Purchasing Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR
and its listed subcontractors are registered with the California Department of
Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.
City requires CONTRACTOR and its listed subcontractors to comply with the
requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract Code,
or engage in the performance of any contract for public work, as defined in this
chapter, unless currently registered and qualified to perform public work pursuant
to Section 1725.5. It is not a violation of this section for an unregistered contractor
to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code,
provided the contractor is registered to perform public work pursuant to Section
1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR
is required to post all job site notices prescribed by law or regulation and
CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by
DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
worker, or other employee employed by, respectively, CONTRACTOR and its listed
subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR and
its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within the
10-day period, then CONTRACTOR and its listed subcontractors shall be subject to
a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof,
for each worker, and CITY shall withhold the sum total of penalties from the
progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
CC. FORCE MAJEURE. Neither Party shall be in default of its obligations under this
Agreement in the event, and for so long as, it is impossible or extremely
impracticable for it to perform its obligations due to an “act of God” (including,
but not limited to, flood, earthquake, fire or other catastrophic events), civil
disturbance, strikes (except any strikes involving a Party's personnel), orders or
judgments of any Federal, State or local court, administrative agency or
governmental body, or other similar cause affecting the city of Palo Alto, not the
fault of, and beyond the reasonable control of, the Party claiming excuse. A party
claiming excuse under this Section must (1) have taken reasonable precautions, if
possible, to avoid being affected by the cause and (2) notify the other Party in
accordance with this Section.
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
Any suspension of performance by a Party pursuant to this Section shall be only
to the extent, and for a period of no longer duration than, required by the nature
of the event, and the Party claiming excuse from obligation shall use its best
efforts in an expeditious manner to remedy its inability to perform, and mitigate
damages that may occur as a result of the event.
The Party claiming excuse shall deliver to the other Party a written notice of intent
to claim excuse from performance under this Agreement by reason of an event of
Force Majeure. Notice shall be given promptly in light of the circumstances, but in
any event not later than 5 days after the occurrence of the event of Force Majeure.
Such notice shall describe in detail the event of Force Majeure claimed, the
services impacted by the claimed event of Force Majeure, the expected length of
time that the Party expects to be prevented from performing, the steps which the
Party intends to take to restore its ability to perform, and such other information
as the other Party reasonably requests.
The partial or complete interruption or discontinuance of CONTRACTOR’s services
caused by an event of Force Majeure shall not constitute an event of default under
this Agreement. Notwithstanding the foregoing, in the event of non-performance
excused by Force Majeure, where the CONTRACTOR’s nonperformance continues
or is noticed to continue for 10 days or more, CITY shall have the right to terminate
this Agreement immediately and shall have no obligation to pay for services that
have not been performed.
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City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement on the date first above written.
CITY OF PALO ALTO SYNAGRO-WWT, INC
_________________________ By________________________________
City Manager or Designee
Name _____________________________
Title_______________________________
Telephone _________________________
Approved as to form: By_________________________________
Name _____________________________
Title_______________________________
_________________________
City Attorney or Designee Telephone _________________________
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Contract Administration Manager
410-537-6154
Rhylee Callan, Contract Administration Manager
Contract Administration Manager
410-537-6154
Rhylee Callan, Contract Administration Manager
City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
EXHIBIT A
SCOPE OF SERVICES
1. BACKGROUND AND PURPOSE
a. The RWQCP is a wastewater treatment plant that produces sludge
requiring offsite treatment. Two onsite sewage sludge incinerators were
retired in 2019 and replaced with a new sludge dewatering and truck
loadout facility. Since 2019, the sludge has been hauled to two different
regional treatment facilities, including the Synagro site in this contract,
for treatment and end use disposal.
b. To prepare for hauling and treatment, the City first solicited proposals for
sludge hauling and treatment services in 2017. Council approved a three-
year contract 1 with Denali Water Solutions, LLC (Denali) on June 18, 2018
for sludge hauling services through March 31, 2022. Denali began daily
sludge hauling from the City’s dewatering facility on March 19, 2019. Five-
year contracts1 for sludge treatment services with Lystek International
Limited (Lystek) and Synagro-WWT, Inc. (Synagro) were also approved on
June 18, 2018, but these contracts have longer terms through March 31,
2024. A new contract2 for sludge hauling, again with Denali, was approved
on January 24, 2022 for three more years of hauling services beginning
April 1, 2022 and ending March 31, 2025. Following a new solicitation, this
contract extends by five years the sludge treatment services provided at
the Synagro treatment facility.
c. Current treatment facility addresses are shown below along with currently
contracted annual minimums and pricing:
i. Synagro Central Valley Compost Facility (CVC)
1. Address: 13757 Harmon Rd, Dos Palos, CA 93620
2. Minimum wet tons per year is 10,000 at $40.85/ton
2. SLUDGE PREPARER’S ADDRESS
Palo Alto Regional Water Quality Control Plant
1 Staff Report ID# 8913 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2018/id-8913-approve-three-public-works-contracts-for-sludge-hauling-and-offsite-treatment-
services.pdf
2 Staff Report ID# 13520, see p. 17 at https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2022/20220124/20220124pccsm-
amended-linked-cq-added.pdf
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City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
2501 Embarcadero Way
Palo Alto, CA 94303
650-329-2598 - phone
3. SERVICE ASSUMPTIONS AND PRICES.
a. Except for tonnage commitments required by the Contractor, the City does
not expressly or by implication agree that the actual amount of work shall
correspond to annual raw sludge tonnages mentioned in this specification,
but reserves the right to increase, decrease, or modify the amount of any
class or portion of the work or to omit portions of the work as may be
deemed necessary or expedient by the City.
b. Annual minimum tonnage delivery guarantee is 10,000 wet tons.
4. PALO ALTO SLUDGE CHARACTERISTICS
a. The material covered under this Agreement is a mix of raw, dewatered
wastewater sludge and scum (hereafter, “sludge”) that has not yet been
stabilized.
b. The wastewater sludge is collected as waste sludge from activated sludge
tanks (about 29% of total content) and primary sludge settling tanks (about
71% of total content). This blend is then thickened in gravity thickeners to
3% to 4% solids. The sludge blend is processed through grinders before
being sent to a blend tank. The sludge is kept blended with mix pumps and
aerated by a blower in a 100,000 gallon mix tank, is pumped to a belt filter
press, is treated for odors in-line with a sodium hypochlorite solution, and
is then dewatered using a high molecular weight cationic polymer solution
on a belt filter press. Upstream preliminary treatment processes include
grit removal and mechanically raked barscreens using ¾” spacing at the
headworks.
c. Primary tank scum is pumped through a grinder, sent to a scum
concentrator, and thickened to about 50% solids. This scum is added to the
20% plus sludge cake screw conveyors that feed into sludge cake bins.
d. Solids content of filter press cake will have a solid content of not less than
22%. In general, sludge dryness is often in the range of 29% to 30%.
e. Except as stated herein, the City cannot guarantee condition or quality of
the material. Therefore, notice is hereby given that the content and nature
of the sludge and scum may change depending on RWQCP process control
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City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
changes, treatment plant changes, influent characteristics, or treatment
plant effectiveness.
f. The City will certify that the wastewater sludge and scum pollutant
concentrations are at or below the metal concentration limits established
in 40 CFR 503.13, Table 1 and Table 3.
g. The wastewater sludge contains pathogenic microorganisms and does not
meet all 40 CFR 503 regulations. The city declares that:
i. The sludge does not meet the pathogen reduction requirements of
40 CFR 503.32(b)(3) [“PRSP”].
ii. The sludge does not meet the vector attraction reduction
requirements of 40 CFR 503.33(b(1).
h. Furthermore, the RWQCP’s annual USEPA biosolids reports are available
upon request. Exhibit A-1 (Palo Alto Sludge Characteristics) is provided
with analytical data, including trace metal analysis on sludge and scum as
well as general raw sludge characterization.
i. At no time during the term of this Agreement shall the City make available
to the Treatment Facility, nor shall the Treatment Facility be obligated to
handle, any wastewater sludge which is designated a hazardous waste
under any applicable law, rule, or regulation, and nothing herein shall
relieve the City of any liability or responsibility with respect to any sludge
generated at its facilities which is a hazardous waste.
j. The City will sample and test its final sludge material to identify the metal
concentration limits. All City sampling and analytical reports are available
upon request during the term of the agreement. Per USEPA sewage sludge
regulations (40 CFR Section 503) , sludge is sampled every other month for
metals including: arsenic, cadmium, copper, lead, mercury, molybdenum,
nickel, selenium, and zinc concentrations.
5. SLUDGE PRODUCTION ESTIMATES
a. The City produces wastewater sludge twenty-four (24) hours per day,
seven (7) days per week resulting in approximately 16,500 to 20,000 wet
tons annually, which is approximate to the lowest and highest quarter
production rates since January 2020, excluding 2023 first quarter. Note
from Exhibit B that 2019 was a year of optimizing the sludge dewatering
facility. Though 2019 is pre-pandemic and would seem to be the year for
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City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
estimating maximum production values, 2019 is not indicative of current
sludge dewatering capabilities and anticipated production quantities.
January to March 2023 shows higher tonnage amounts from solids
loadings induced by winter storm flows, and they are not used for
predicting future maximum sludge production. The estimated sludge
below will be divided between two vendors, Lystek and Synagro.
Dates
Estimated
Minimum Sludge
Production
Estimated
Maximum Sludge
Production
Estimated Annual
Production
Increase
4/1/24 – 3/30/25 16,500 20,600 --
4/1/25 – 3/30/26 16,500 21,424 4%
4/1/26 – 3/30/27 16,500 22,281 4%
4/1/27 – 3/30/28 16,500 25,089 4% + 1917 tons1
4/1/28 – 3/30/29 16,500 28,754 4% + 2661 tons1
1 Note: additional sludge production expected with upgraded Secondary Treatment
system, which will produce an estimated 34% additional waste activated sludge (WAS)
or about 10.2% additional total sludge production beginning on an estimated date of
6/9/2027
b. Production rates may be varied or stopped to match RWQCP operational
needs. Operation may also be interrupted occasionally for maintenance or
repair.
c. The amount of biosolids to be treated is an estimate only. Therefore,
notice is hereby given that the quantity, content, and nature of the
material may change depending on the RWQCP process control changes,
process upsets, plant upgrades, repairs, maintenance, operational
improvements, belt press dewatering schedule, day of week, holidays,
seasonal changes, storm-induced increases in produced solids, changes in
community population, treatment plant changes, and so forth.
6. GENERAL RESPONSIBILITIES
a. The Contractor, as the treatment facility operator, is to know, follow,
comply with, and stay updated on all federal, state, and local laws,
regulations, statues, ordinances, orders, decrees, and permits that affect
this work. This includes loading and unloading, treatment site operation
and maintenance, monitoring and reporting, processing and disposal of
sludge, USDOT, transportation, driver and operator certifications,
environmental and pollution regulations, noise control, and inspections by
authorized representatives as required by such requirements.
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Documentation of specific permits, orders, decrees, registrations, and so
forth shall be provided upon request. All costs associated with obtaining
such permits and licenses shall be considered as included in the unit price.
Federal Regulations, including 40CFR Parts 257, 258, 403 and 503, provide
specific requirements for biosolids disposal and must be complied with.
b. Raw sludge contains micro-organisms from the wastewater treatment
process that include pathogens. Precautions are required, such as
adequate training, wearing proper PPE (e.g., latex or nitrile gloves, boots,
etc.), washing hands with soap, and access to potable drinking water and
OSHA approved first aid kits. The Contractor is to follow an Exposure
Control Plan for Blood Borne Pathogens pursuant to Cal-OSHA rules and
California Code of Regulations, Title 8, Section 5193. The Exposure Control
Plan is to be on file for review, if requested.
7. DELIVERY SCHEDULE
a. The RWQCP operates year-round and normally calls for two truck pickups
per day, each truck averaging 25 wet tons of sludge. The RWQCP may call
for three trucks and sometimes one truck or no trucks. There have been a
few instances of four or five trucks called for in one day.
b. The RWQCP typically requires haulers to load sludge prior to 6:00 a.m. in
Palo Alto but trucks may be loaded later in the morning, depending on the
situation, haul distance, driver hour limits, and so forth.
c. Treatment sites that are closed for specific holidays (e.g., Thanksgiving,
Christmas, New Years’) or when the City’s contracted hauler is not working
can be accommodated with additional storage capacity at the RWQCP for
one day with advanced planning. During the contract term, the Treatment
Facility is to coordinate with the City’s contracted hauler and the RWQCP
about operating status and hours for public holidays.
d. The Treatment Facility is to share their operating hours with City’s
contracted hauler. The Treatment Facility is to share holidays that they are
closed with City’s contracted hauler.
8. COORDINATION WITH CITY’S CONTRACTED SLUDGE HAULER
a. Permit requirements at treatment site are to be shared with City’s
contracted hauler upon request by City or hauler at no extra expense to
City of Palo Alto.
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b. Any permit requirements are to be directly handled with City’s contracted
hauler, including for insurance, training, reporting, and other
requirements.
c. The City does not have a certified weigh scale onsite. It is the City’s hauler’s
responsibility to avoid overweight loads and pay any associate fines. The
Treatment Facility should directly notify the hauler’s dispatcher of
overweight loads as well as notify the City’s project manager. The City can
direct the Hauler to load their trailers with less weight, if needed. There
are no RWQCP onsite zones or facilities for unloading excess material to
return a truck to a legal weight limit. There is no separate weigh scale
onsite to aid the Hauler in how much material to remove.
d. The RWQCP is not a staging or storage site. The City will not normally allow
a hauler to stage or store loaded trucks at the RWQCP or a Treatment
Facility, except permission may be granted for unusual circumstances.
9. TREATMENT REQUIREMENTS
a. If the treatment / disposal facility has a permit violation, they will notify
the Palo Alto project manager in writing within 30 days of receipt of
written notice. All fines will be paid by the treatment facility and not billed
to Palo Alto.
b. The treatment facility is required to provide adequate space to
accommodate the ingress and egress of the trucks and trailers of the City’s
sludge hauling contractor. The facility will provide water for vehicle clean-
up, suitable lighting for nighttime operation, and any additional facilities
(portable toilets, handwashing facilities) that may be required.
c. Treatment facility shall provide an annual summary to the City of all
monitoring and analytical data as required to complete the City’s Annual
Biosolids Generator’s Report for the USEPA due February 19th of each year.
This annual summary shall be posted by January 31st each year and shall
be sent to the Project Manager.
d. Treatment facility shall provide the name of a 24-hour emergency contact
person and phone number. Facility will train their onsite staff and comply
with Palo Alto Emergency and Spill Response Plan, as necessary.
e. City will have right to inspect treatment / disposal facility’s site at any time
and without prior notification. Treatment facility shall maintain and
provide copies to the City of all records, documents, and papers
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documenting the disposition of biosolids handled by the facility for
inspection by authorized local, state, and federal representatives as
required by law.
f. Neither party shall use the name, marks, or logo of the other treatment
facility in any planned advertisement, promotional material, press release,
or other planned publicity or marking materials, in any form or media, with
regard to the subject matter of the agreement without the prior written
approval of the other party.
g. Treatment parties shall share any requirements and conditions to the
City’s Palo Alto’s contracted Hauler, if not already provided to the current
hauler (i.e., Denali). The contracted hauler may change on April 1, 2025 or
later, when the current 3-year hauling contract and any contract
extensions are completed. If a new hauler is contracted by the City, the
Treatment Facility shall promptly coordinate their requirements with the
new City hauler.
h. Annual reports shall be provided to the RWQCP each year detailing
tonnage treated and final disposal disposition.
i. Treatment facility dates, times, hours of operation, and holiday schedules
shall be provided to sludge haulers interested in proposing on services to
the City of Palo Alto.
10. PAYMENT AND PRICING CONDITIONS
a. See Attachment C – Contract, Section 8, Invoicing.
b. Payment for work is to be made on a wet tonnage basis. Weight shall be
based on a certified scale.
c. Except as directed otherwise in these specifications, full compensation for
completing Agreement work is considered to be included in the unit prices
paid for the various items of work and no separate payment will be made
therefore.
d. Invoicing. Submit a monthly invoice to:
Rwqcp.invoices@cityofpalolato.org
Palo Alto Regional Water Quality Control Plant
Attn: Project Manager, James Allen
2501 Embarcadero Way
Palo Alto, CA 94303
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City of Palo Alto General Services Agreement 20 Rev. March 29, 2018
650-329-2598 - phone
Invoice shall include:
• Purchase Order Number
• Item description
• Copy of each load delivery tag along with the tons hauled
• Attached certified weight ticket for each load
• Certified net weight of each load times contract price per ton
11. DOCUMENTATION
a. The Contractor shall, at all times during the transportation, storage, and
disposal of sludge to be managed under this Agreement, know the
location, condition and status of each item being managed.
END OF SECTION
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EXHIBIT A-1
PALO ALTO SLUDGE CHARACTERISTICS
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EXHIBIT B
SCHEDULE OF PERFORMANCE
Alternative 1.
CONTRACTOR shall perform the Services according to the following schedule:
Daily sludge treatment from April 1, 2024 to March 31, 2029.
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EXHIBIT C
SCHEDULE OF FEES
ALTERNATIVE 3. Compensation based upon fee schedule
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of
compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses,
shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours
worked for which payment would result in a total exceeding the maximum amount of compensation set forth
herein shall be at no cost to CITY.
DETAILED RATE SCHEDULE
Contract Start Contract End
Synagro
Unit Price
($ / US Wet Ton)
Synagro
Annual Adjustment Factor
04/01/24 03/30/25 $ 68.00 04/01/25 03/30/26 $ 72.08 4.8%
04/01/26 03/30/27 $ 76.40 4.8%
04/01/27 03/30/28 $ 80.99 4.8%
04/01/28 03/30/29 $ 85.85 4.8%
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
City of Palo Alto General Services Agreement 24 Rev. March 29, 2018
EXHIBIT D
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM
OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE
SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR
HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF
CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED,
BELOW:
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
YES AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$2,000,000
2,000,000
NO
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $2,000,000
YES POLLUTION LIABILITY
ALL DAMAGES $2,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT
ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND
EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE
INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND
ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
City of Palo Alto General Services Agreement 25 Rev. March 29, 2018
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS,
SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY
REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING
COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN
NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-
PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
DocuSign Envelope ID: CD2AAB48-F1DE-4C9B-9F2E-49DE8287B2F1
Attachment C
List of Key Terms
Alternative daily cover (ADC): ADC means cover material other than earthen material placed
on the surface of the active face of a municipal solid waste landfill at the end of each operating
day to control vectors, fires, odors, blowing litter, and scavenging. Federal regulations require
landfill operators to use six inches of earth material as daily cover unless other materials are
allowed as alternatives. CalRecycle has approved 11 ADC material types. Generally, these
materials must be processed so that they do not allow gaps in the exposed landfill face.
Anaerobic digestion: Anaerobic digestion is a collection of processes by which microorganisms
break down biodegradable material in the absence of oxygen.
Beneficial use: Use of a product with a defined benefit, such as biosolids used as soil
amendment. Disposal, such as landfilling or incineration, is not beneficial use.
Biogas: A mixture of different gases produced by the breakdown of organic matter in the
absence of oxygen to produce a renewable energy source when combusted.
Biosolids: Organic fertilizer or soil amendments produced by the treatment of domestic
wastewater. Biosolids consist primarily of dead microbes and other organic matter. Untreated
sludge or sludge that does not conform to regulated pollutants and pathogen treatment
requirements are not considered biosolids. Biosolids are regulated through the Environmental
Protection Agency Title 40 Code of Federal Regulations Part 503 Rule (often referred to as the
“503 Biosolids Rule”).
Biosolids land-application facility: A facility where biosolids are spread onto the land at
agronomic rates for production of food or fiber. The facility includes any structures necessary to
store the biosolids until the soil, weather, and crop conditions are favorable for land
application.
Class A biosolids: Material that has met the Class A pathogen reduction requirements or
equivalent treatment by a process to further reduce pathogens (PFRP) in accordance with 40
CFR 503. Processes include composting, heat drying, heat treatment, thermophilic aerobic
digestion, beta or gamma ray irradiation, and pasteurization.
Class B biosolids: Material that has met the Class B pathogen reduction requirements or
equivalent treatment by a process to significantly reduce pathogens (PSRP) in accordance with
40 CFR 503. Processes include aerobic digestion, composting, anaerobic digestion, lime
stabilization, and air drying.
Dewatering; dewatered biosolids: A process used to remove water from biosolids producing
dewatered biosolids that contain equal to or greater than 20 percent dry solids.
Dry weight basis: Calculated on the basis of having been dried at 105 degrees Celsius until
reaching a constant mass (i.e., essentially 100 percent solids).
40 CFR 503: Regulations for setting "Standards for the use or disposal of sewage sludge," Title
40 Code of Federal Regulations Part 503.
Gasification: Thermal process to convert carbon-based material into a synthesis gas.
Gasification is different from incineration, which uses large amounts of air for combustion to
make carbon dioxide and heat. Gasification is in a typical temperature range of 900°F to 3000°F
with a limited supply of air or oxygen, only a fraction of what is used in incineration. The
synthesis gas can be used as a fuel to make electricity. There are no known sewage sludge
gasification systems operating in the US solely on sewage sludge.
Land application: The beneficial use of biosolids applied to land based upon crop needs and the
composition of biosolids.
Pathogen: An organism capable of causing a susceptible host to develop a disease or infection.
Pyrolysis: Thermal process to convert carbon-based material into a synthesis gas. Pyrolysis is
different from incineration, which uses large amounts of air for combustion to make carbon
dioxide and heat. Pyrolysis uses an indirect source of heat to thermally decompose organic
materials, in a typical temperature range of 400°F to 1400°F, and in the absence of air or
oxygen. The unreacted fixed carbon component of the material, along with any inorganic
materials, forms a char/ash mixture that remains as a residual. The synthesis gas can be used as
a fuel to make electricity and/or as heat used in a biodryer (as in the patented BioForceTech
system) to offset external fuel sources for drying the sludge.
Sludge: The solid, semi-solid, or liquid residue removed during the treatment of wastewater.
Thermal hydrolysis process (THP) (Lystek Technology): Lystek’s THP is a low temperature and
pressure process that disintegrates microbial cell walls and hydrolyzes complex
macromolecules into simpler components. It uses digested or undigested sludge as a feedstock,
breaks the feedstock down in a reactor using high speed shearing, uses alkali treatment to
increase pH, and is completed with injection of low temperature and low-pressure steam.
Lystek’s THP differs from the CAMBI process evaluated in the Biosolids Facilities Plan; the
CAMBI THP operated at a higher temperature and pressure, utilized pretreatment screening
and pre-thickening, and did not use alkali treatment.
Thermophilic digester: A type of anaerobic digester that operates at temperatures above 50°C
and produces biogas.
Vectors: Rodents, flies, mosquitoes, or other organisms capable of transporting infectious
agents.